Ottawa, ON - Bryan Hayes, Member of Parliament for Sault Ste. Marie, on behalf of the Honourable Lisa Raitt, Minister of Transport, announced today that the Government of Canada will provide $5.3 million over three years for the continued operation of the passenger rail service between Sault Ste. Marie and Hearst, Ontario.

The City of Sault Ste. Marie will receive federal support for three years for the continued operation of the passenger rail service to establish a new regime of passenger rail service in the area. This would allow Railmark, the proposed operator, to demonstrate its ability to deliver on its business plan. A review will be carried out at the three-year mark to determine if additional funding is warranted.

Since 1977, the Government of Canada has provided financial support to ensure the continued operation of the passenger rail service between Sault Ste. Marie and Hearst under the Regional and Remote Passenger Rail Services Class Contribution Program. In 2013, the program was renewed as the Remote Passenger Rail Program, with a focus on remote rail services that provide access to established, year-round communities with few or no other transportation options.

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Elaine Della-Mattia
The Sault Star
The ACR passenger train chugged into Sault Ste. Marie late Tuesday from Hearst.
Unless some very last minute arrangement is inked, it's expected to be the last passenger train trip between the two cities operated by CN Railway.
After all, it was a little more than a year ago when Transport Canada first announced that it was cutting its remote access transportation funding - $2.2 million annually - to CN because stops along the route between the two Northern Ontario communities no longer fit the criteria.
A quick request to the government garnered a temporary one-year hiatus that allowed local stakeholders a chance to regroup, complete a business study showing the economic benefit of the train on the region's economy and devise a plan that would see a third-party operator run the passenger train and tour train service.
All deadlines and requests for information have been met by the stakeholder's group. A third-party operator, Railmark Canada, has been identified and CEO B. Allen Brown says he's ready to transform the passenger service into something unique that will set the stage for other short-line rail operations in North America.
But as of March 31, Transport Canada has not announced whether it will buy into the stakeholder plan that requests $7 million over five years to help bridge the gap while Railmark becomes a self-sufficient operation.
Transport Canada Minister Lisa Raitt's press secretary has only responded with an emailed comment on behalf of the minister.
It read "my officials are currently reviewing a proposal from a possible new operator to provide passenger rail service along this line."
More information will be provided after Transport Canada officials complete their review, the email said.
No dates, no timelines, no promises.
"It's a big mystery to us as to what is going to happen," said Linda Savory-Gordon, co-chair of the Coalition for Algoma Passenger Trains (CAPT). "Everyone has been cautiously optimistic and there has not been a massive withdrawal of belongings from the cottages but everyone is getting worried as the date is here."
Sault MP Bryan Hayes said in a telephone interview that he met with Raitt first thing Tuesday morning.
"I reiterated the importance of the train and she understands that," Hayes said. "I've been pushing the minister very, very hard but the reality is that it's a challenging file and asks like this often take several months to bring to fruition."
Hayes suggested that interim options are being examined but there is no announcement to be made at this time.
"I'm hopeful this will be resolved in a timely manner but I'm not in a position to make any announcement yet," he said. "But I can tell you that everyone is working hard to make sure that train does go North."
The local stakeholder committee has attempted to show government officials that the train services mostly remote areas, with statistics gathered that indicate 80% of the one-way passenger fare trips either arrive or are destined for areas that are non-accessible by other modes of transportation.
The passenger rail service is used by cottage owners, tourists, business operators or by those travelling to and from the Oba settlement area.
In addition, Savory-Gordon points out that the tour train is one of the largest tourism draws in the area and the resources between it and the passenger train are shared.
While April is usually a "slower" month for train travel to either cottages or tour train operators, Hayes said "it could be critical for some individuals and I don't want to sense anyone stranded. That's the key."
He noted that Railmark does not have all its approvals yet to run the train. "That's why CN is being talked to right now. Everyone is doing their job and working hard."
Railmark's Brown said he remains optimistic.
"Sometimes things don't move as quickly as we'd like, but that doesn't mean they're not going to happen," he said when contacted by The Sault Star. "We're all waiting and we're all hearing some good things."
Brown is satisfied that Transport Canada has all the information it needs from his company, as well as the local stakeholder group, to make its decision.
In the meantime, he hasn't been idle.
Brown said conversations between him, CN and the government have been taking place daily and planing and mutual agreements are being arranged.
"There still may be a few tweaks to be made but it's going to work out. I truly believe that," Brown said. "This is just a process we're going to have to endure."
While neither Hayes, Brown or CN would confirm that interim measures are being explored until any federal government funding announcement is made or denied, stakeholders are being left with a sense that various scenarios may be in the works.
"It's not the end of the world if the train doesn't operate as often at this time of year because of the numbers," Brown said. "But I can assure you we've looked at all the scenarios and we've addressed them. No rock has been left unturned."
Even if there is a positive funding announcement made by the federal government, Brown notes that it will still take some time to sign the paperwork and formalize the agreements.
"We didn't want to get to the 11th hour and 59th minute, but here we are," he said.
Sault Mayor Christian Provenzano said he's be in contact with Hayes over the past few weeks and the line of communication remains open.
"He's our member of government and the metaphorical ball is in his court," Provenzano said. "I've let him know that if there is anything that is required of us, to let us know and we just have to see how it plays out."
Al Errington, owner of Wilderness Island, a tourist resort along the ACR that relies on the passenger rail service to transport his guests to and from the operation, said he's becoming "exceedingly nervous" and will remain that way until he hears that something is in place.
He's come to realize that there will be some disruption in service and he's banking on it just being for the short term.
But Errington notes that train service is not like a car - you can't just start it up and drive.
"It's a sophisticated means of transportation and it takes some time to get it going and coordinate. There are only one set of tracks and its used for passengers and freight," he said.
Errington has been booking tourists for Wilderness Island as in past years, with the assumption the train will be running.
"Starting mid May there are hundreds of people that will be using the train and then it goes full blast after that," he said.
Statistics show that April is the third slowest month of passenger rail usage but the numbers pick up significantly in May and stay on a high throughout the spring and summer months and then again into the fall for the Agawa Tour Train.
Errington said some of his guests may agree to arrive by float planes, but expects he'd lose about half because there are those who won't fly on float planes and others with mobility issues that just can't maneuver in and out of them.
"When you're travelling to the wilderness, the train is the best way to go. It's a safe and comfortable and hospitable form of transportation that all ages can ride," he said.
Errington and Brown both say the longer the trains stay idle, the more damage that is done to the region's economy.